US : Pre Market News – 23 Aug 2016

Sep E-mini S&Ps (ESU16 +0.24%) are up +0.19% at a 1-week high and European stocks are up +0.89% on signs of economic optimism. Fallout from Brexit continues to subside after the Eurozone Aug Markit composite PMI unexpectedly expanded at the fastest pace in 7 months. A possible increase in M&A activity is also positive for equity prices as Monsanto is up nearly 4% in pre-market trading after people familiar with the matter say that Bayer AG is close to an agreement to acquire Monsanto. Asian stocks settled mostly higher: Japan -0.61%, Hong Kong unch, China +0.16%, Taiwan +0.55%, Australia +0.70%, Singapore +0.33%, South Korea +0.45%, India +0.02%. Japan’s Nikkei Stock Index fell to a 2-week low as weakness in USD/JPY undercut exporter stocks.

The dollar index (DXY00 -0.17%) is down -0.13%. EUR/USD (^EURUSD) is up +0.13%. USD/JPY (^USDJPY) is down -0.16%.

Sep T-note prices (ZNU16 -0.14%) are down -4.5 ticks.

The Eurozone Aug composite PMI unexpectedly rose +0.1 to 53.3, stronger than expectations of -0.1 to 53.1 and the fastest pace of expansion in 7 months.

The Japan Aug Nikkei manufacturing PMI rose +0.3 to 49.6, the highest in 6 months.

Key U.S. news today includes: (1) prelim-Aug Markit U.S. manufacturing PMI (expected -0.2 to 52.7, July +1.6 to 52.9), (2) Jul new home sales (expected -2.0% to 580,000, Jun +3.5% to 592,000), (3) Aug Richmond Fed manufacturing index (expected -4 to 6, Jul +20 to 10), (4) Treasury auctions $ 26 billion 2-year T-notes.

Russell 1000 companies that report earnings today: Best Buy (consensus $ 0.43), JM Smucker (1.75), Toll Brothers (0.62), Intuit (-0.02).

U.S. IPO’s scheduled to price today: none.

Equity conferences this week: Heikkinen Energy Conference 2016 on Wed

Best Buy (BBY +0.64%) jumped over 12% in pre-market trading after it reported Q2 adjusted EPS continuing operations of 57 cents, well above consensus of 43 cents as Q2 enterprise comparable sale unexpectedly rose +0.8%, better than expectations of a -0.6% decline.

Monsanto (MON +0.34%) climbed nearly 4% in pre-market trading after people familiar with the matter said negotiations between Monsanto and Bayer AG are advancing toward a deal.

Darden Restaurants (DRI -0.24%) was rated a new ‘Buy’ at Canaccord Genuity with a 12-month target price of $ 74.

Nordson (NDSN +0.05%) rose over 2% in after-hours trading after it reported Q3 adjusted EPS of $ 1.47, higher than consensus of $ 1.33, and said it sees Q4 sales up 6%-10%.

Sonic (SONC -1.07%) was rated a new ‘Buy’ at Canaccord Genuity with a 12-month price target of $ 35.

Tableau Software (DATA -0.69%) jumped over 5% in after-hours trading after it announced Adam Selipsky, currently VP of marketing, sales and support for Amazon Web Services, will be Tableau’s new CEO.

Square (SQ +0.17%) was upgraded to ‘Buy’ from ‘Hold’ at Stifel with a 12-month target price of $ 15.

Multi Packaging Solutions International (MPSX -0.41%) lost nearly 2% in after-hours trading after it reported Q4 adjusted EPS of 3 cents, well below consensus of 9 cents.

Premier (PINC +2.74%) dropped 8% in after-hours trading after it reported Q4 adjusted EPS of 36 cents, below consensus of 38 cents.

Shoe Carnival (SCVL +0.51%) climbed over 3% in after-hours trading when it was announced that it will replace Sagent Pharmaceuticals in the S&P SmallCap 600 at the close of trading on Friday, August 26.

Zoe’s Kitchen (ZOES +1.09%) sank 15% in after-hours trading after it reported Q1 comparable sales up 4%, below consensus of 5.1%, and then lowered its view on annual comparable sales to up 4%-5%, weaker than a previous view of 4.5%-6%.

Eagle Pharmaceuticals (EGRX -1.12%) gained almost 2% in after-hours trading when it was announced that it will replace Cash America in the SmallCap 600 after the close of trading Thursday. September 1.

Tokai Pharmaceuticals (TKAI +22.52%) slumped over 17% in after-hours trading after the company said it will stop enrollment in its Armor2 expansion trial of its treatment of prostate cancer.

Sophiris Bio (SPHS +0.52%) plunged over 25% in after-hours trading after the company said it will sell stock and warrants to raise cash. Price, volume and terms have yet to be announced.

Alimera Sciences (ALIM +4.67%) jumped over 4% in after-hours trading after Great Point Partners LLC reported a 5.12% passive stake in the company.

Sep E-mini S&Ps (ESU16 +0.24%) this morning is up +4.25 points (+0.19%) at a 1-week high. Monday’s closes: S&P 500 -0.06%, Dow Jones -0.12%, Nasdaq +0.05%. The S&P 500 on Monday closed slightly lower on weakness in energy producers after the price of crude oil tumbled -3.46%. There was also concern that the Fed may still raise interest rates this year after Fed Vice Chair Fischer said the U.S. economy was close to meeting the Fed’s goals. Health care stocks received a boost on M&A activity after Pfizer agreed to buy Medivation for about $ 14 billion.

Sep 10-year T-notes (ZNU16 -0.14%) this morning are down -4.5 ticks. Monday’s closes: TYU6 +10.50, FVU6 +4.50. Sep T-notes on Monday recovered from a 1-month low and closed higher on increased safe-haven demand with the weakness in stocks. T-notes were also boosted by lower inflation expectations after the -3.46% plunge in crude oil prices. T-notes were undercut early by speculation the Fed was closer to raising interest rates after Fed Vice Chair Fischer said the U.S. economy “is close” to meeting the Fed’s targets and that growth is expected to pick up in coming quarters.

The dollar index (DXY00 -0.17%) this morning is down -0.122 (-0.13%). EUR/USD (^EURUSD) is up +0.0015 (+0.13%). USD/JPY (^USDJPY) is down -0.16 (-0.16%). Monday’s closes: Dollar index unch, EUR/USD -0.0005 (-0.04%), USD/JPY +0.11 (+0.11%). The dollar index on Monday closed little changed. The dollar index was boosted by Fed Vice Chair Fischer’s hawkish comment that the U.S. economy “is close” to meeting the Fed’s targets and that growth in coming quarters may pick up. There was also strength in USD/JPY on speculation the BOJ may expand stimulus measures after BOJ Governor Kuroda told the Sankei newspaper that there is “sufficient chance” the BOJ will boost easing measures at next month’s policy meeting.

Oct crude oil (CLV16 -0.74%) this morning is down -44 cents (-0.93%) and Oct gasoline (RBV16 -1.42%) is down -0.0219 (-1.56%). Monday’s closes: CLV6 -1.70 (-3.46%), RBV6 -0.0339 (-2.36%). Oct crude oil and gasoline on Monday closed sharply lower on supply concerns after Iraq said it will increase exports by +150,000 bpd as exports resume from three oil fields in Kirkuk and on the statement by Nigerian militants that they will end attacks on oil infrastructure in Nigeria and conduct talks with the government.